A Passive Benchmark Portfolio Is _______________

question 16

Multiple Choice

A passive benchmark portfolio is _______________.
I.a portfolio where the asset allocation across broad asset classes is neutral and not determined by forecasts of performance of the different asset classes
II.one where an indexed portfolio is held within each asset class
III.often called the bogey

• A) I only
• B) I and III only
• C) II and III only
• D) I, II and III

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparison in many statistical methodologies.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Normal Distribution

A symmetric distribution in the shape of a bell, indicating that occurrences of data close to the mean are more common than those far from the mean.

Statistic

A statistic is a single measure of some attribute of a sample, used to infer or estimate the corresponding attribute in the population.